Not exact matches
It's a risky strategy, but one that many less - experienced and less - educated investors have adopted — both
during the epic
bull market seen earlier this year and in recent months following its equally amazing collapse.
While we seek to outperform
during all parts of the
market cycle, our historical experience suggests that our strategy may lag
during broad - based
bull markets, such as was
seen in 2017.
I've selected this period to
see what happened to these companies
during a crash (2008 - 2009) and
during a
bull market (2009 - 2016).
Corrections are
seen as entirely normal and even helpful in curbing excessive gains
during bull markets.
With a big investment in ETFs already, Schwab needs to
see a payoff from the strategy — especially
during such a big
bull market.
So while bear -
market talk will inevitably escalate
during stock sell - offs like we've
seen so far this year, that doesn't mean the current
bull market is necessarily ready to give way to a bear.
Even though absolute momentum may lag behind
during prolonged
bull markets, we
see that it gives attractive long - run results compared to buy and hold on a risk - adjusted basis.
These funds underperformed
during the bear
market of 2008/2009 and are underperforming in the
bull market we are
seeing now.
I've selected this period to
see what happened to these companies
during a crash (2008 - 2009) and
during a
bull market (2009 - 2016).
However, it was not as exceptional as last April, when we
saw quite exceptional returns
during a
bull market.
The potential for capital gains
during bull market cycles is astounding however keep in mind that those capital gains can turn into capital losses
during bear
market cycles like we
saw during the 2007 - 2008 financial crisis.
There are those who think that we are simply experiencing a healthy pullback that is part of the wall of worry just like we
saw in 2004,
during that cyclical
bull market.
During a
bull market, people look at the 30 percent gains they are
seeing on their stock portfolios and...
One can
see the classic trend following pattern: capital protection
during bear
markets, some lagging performance
during strong
bull markets (by definition there is a bit of a lag to jump on board of a trend).
Generally you
see P / E expansion
during bull markets and P / E contraction
during bear
markets.
A good time to examine the history of
bull markets to
see what might lie ahead
during this coming third year.
So we look back today & not surprisingly we
see VEIL & VNH (more marginally) both out - performed VOF's multi-asset portfolio
during that 5 year
bull market.
As you can
see, there were strong cynical
bull and bear
markets during this time that caused the
market to essentially remain flat for 16 years.
As you can
see, there were cyclical
bull and bear
markets during this long term secular bear
market.